ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: COM DPA 11-0-0-0

HB 2938: mandatory rounding method; cash transactions

Sponsor: Representative Martinez, LD 16

Caucus & COW

Overview

Mandates the use of Swedish Rounding for cash transactions when the penny is unavailable or not used.

History

The Weights and Measures Services Division (WMSD), administered by the Arizona Department of Agriculture (AZDA), ensures fairness and accuracy in commercial transactions by regulating, weighing and measuring devices used in commerce. Additionally, WMSD conduct a wide variety of inspection programs to protect the marketplace and auditing measuring devices and enforcing the statutes, rules and regulations governing their use.

The Secretary of the Treasury has the authority to mint and issue pennies in amounts necessary to meet the needs of the United States. The Secretary of the Treasury ceased penny production November 12, 2025.

Provisions

1. Mandates Swedish rounding, when pennies are unavailable or not used by a seller, to a total transaction amount that rounds the total transaction amount to the nearest five-cent increment as follows:

a. $0.01, $0.02, $0.06 or $0.07; rounded down to the nearest multiple of $0.05; and

b. $0.03, $0.04, $0.08 or $0.09; rounded up to the nearest multiple of $0.05. (Sec. 2)

2. Applies Swedish rounding requirements to a final total transaction amount of a cash transaction after taxes, fees and other charges are calculated. (Sec. 2)

3. Excludes all non-cash payment methods from Swedish rounding requirements. (Sec. 2)

4. Requires sellers to post visible notice at the point of sale explaining the rounding policy. (Sec. 2)

5. Prohibits a seller from applying a rounding method other than the Swedish rounding. (Sec. 2)

6. Authorizes the WMSD to enforce Swedish rounding requirements by issuing warnings, orders and imposing civil penalties. (Sec. 2)

7. Declares the Swedish rounding requirements are intended to operate consistently with U.S. coinage and legal tender law. (Sec. 2)

8. Specifies Swedish rounding requirements do not:

a. declare any coin or currency invalid as legal tender;

b. require acceptance or refusal of any specific denomination of the U.S. coin or currency; and

c. preempt, conflict with or supersede any provision of federal law regulation. (Sec. 2)

9. Contains a legislative intent clause. (Sec. 3)

10. Makes a technical change. (Sec. 1)

Amendments

Committee on Commerce

1. Adds that a seller must calculate and remit all State and municipal taxes and fees based on the sales price before the cash transaction was rounded.

2. Specifies the seller is not in violation of any law or regulation if the action is based on compliance with the Swedish rounding requirements.

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6. Initials PB HB 2938

7. 2/4/2026 Page 0 Caucus & COW

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